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Strategies & Market Trends : Befriend the Trend Trading -- Ignore unavailable to you. Want to Upgrade?


To: xcr600 who wrote (6668)4/24/2000 11:44:00 PM
From: Dr. Stoxx  Read Replies (1) | Respond to of 39683
 
Here's the formula:

Stop(tomorrow) = Stop(today) + AF x (EP - Stop[today])

Where:

Stop(today) = current stop
Stop (tomorrow) = stop for the next trading day
EP = extreme price...or the highest high reached during a long trade; lowest low reached during a short trade
AF = acceleration factor, which begins on day 1 at 2% (0.02), and increases by 2% at each new high/low reached during the trade, up to a maximum of 20% (0.2).

But: how is the current stop set?